Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Dec 29, 2020
Bearish Signals from the Bollinger Bands for 5 Renewable Energy Equipment Stocks

Bearish Signals from the Bollinger Bands for 5 Renewable Energy Equipment Stocks

The renewable energy industry has performed incredibly well over the last 10 months. After bottoming at $21.11 in March, the Invesco Solar ETF (TAN) has rallied over 400%. As you can imagine, such a rally has caused the ETF and most of the stocks in the group to reach overbought levels on their weekly charts. In most cases they are also overbought on the daily and monthly charts as well.

I ran a scan on December 24 for stocks in overbought territory that also had their daily stochastic indicators make bearish crossovers. On that list were five different renewable energy equipment stocks and the Invesco Solar ETF. The five stocks were:

            First Solar (FSLR)

            JinkoSolar (JKS)

            Sunnova Energy International (NOVA)

            Plug Power (PLUG)

            Sunpower (SPWR)

When I pulled up these five stocks on the Tickeron Technical Analysis Screener, I couldn’t help but notice all five stocks had received bearish signals from the Bollinger Bands indicator within the last three days. Two of the five, Sunnova and JinkoSolar, had bearish signals generated on December 28.

The Tickeron Scorecard has Plug Power ranked as a “sell” and First Solar is ranked as a “strong buy”. The other three have “buy” ratings. Despite the scorecard grades, there are some areas of concern on the fundamental side. All five stocks have poor SMR ratings and four of the five have poor P/E Growth Ratings. We also see that three of the five are overvalued at this time.

I looked at the analysts’ ratings and the short interest ratios for these five stocks in order to get a sense of the sentiment toward them. There is quite a bit of pessimism toward First Solar and Sunpower while the sentiment is neutral on JinkoSolar.

Sunnova Energy and Plug Power both have quite a bit of optimism directed at them right now. Both companies have 11 analysts following them with 10 of the 11 rating the stock as a “buy”. In both instances there is one “hold” rating on each stock. The short interest ratio for Sunnova is very low at 1.6 and Plug’s is below average at 2.49.

What all of this tells me is that if the bearish crossovers from the stochastic indicators and the bearish signals from the Bollinger Bands turn out to be accurate, it will be driven primarily from technical factors. The overbought levels could cause some investors to take profits.

To give you an idea of how the stocks compare to one another and to other stocks in general, I used the comparison feature on Tickeron to compare Plug, Sunnova, and First Solar. If you recall Plug was rated as a “sell”, Sunnova was rated as a “buy”, and First Solar is rated as a “strong buy”.

Related Tickers: TAN
Related Portfolios: RENEWABLE ENERGY
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.